S. Africa to set up clearer FDI rules -Gordhan

Wednesday, 16 November 2011 00:03 - - {{hitsCtrl.values.hits}}

JOHANNESBURG (Reuters): South Africa will set up clear rules to govern foreign direct investment, the finance minister said on Monday, after the government has drawn criticism for its handling of Wal-Mart’s bid for local retailer Massmart.

“Within the next year to 18 months, we should have clear policy document in terms of inward investment,” Pravin Gordhan said when asked about the differing views within the government over Wal-Mart’s entry into South Africa

“(The framework) will clearly identify what industries we consider strategic industries. Where there are national interest there will be clear, transparent and consistent rules which we would expect investors to understand before they come to South Africa.”

South Africa’s competition regulator in May approved Wal-Mart’s $2.4 billion acquisition of 51 percent of Massmart, a discount retailer with operations in southern Africa.

Three government departments have appealed that decision, with the aim of either overturning the deal or adding more conditions to it.

Investors have said the government’s stance has been contradictory and will hurt South Africa’s reputation among global investors.